Brokers' take

Mapletree Logistics Trust | Buy (maintained) Target price: S$1.40 Jan 22 close: S$1.34 OCBC Investment Research, Jan 22

Mapletree Logistics Trust (MLT) reported a strong set of Q3 FY2019 results which met our expectations. Distribution per unit (DPU) grew at a smaller pace of 5 per cent y-o-y to 2.002 Singapore cents as a result of higher borrowing costs and a larger unit base, but this was the strongest y-o-y growth since Q1 FY2015.

Rental reversions also gathered pace during the quarter, coming in at 4.5 per cent higher, driven largely by Hong Kong, China, Singapore and Vietnam. Its portfolio occupancy held firm at 97.7 per cent (+0.1 percentage point), with only China recording a dip in occupancy rates from 98.3 per cent to 95.8 per cent.